The answer is B. accurately reflect the change in production.
D. To entertain. Elizabeth wants to help them enjoy themselves and also wants them to reflect on the past years
Answer:
1. groups costs into meaningful buckets that are then distributed based on the activity or product they support.
Explanation:
Activity based costing basically categorizes various overheads into different activities, that leads to charge of overheads based on different activities.
In this manner overheads that shall be charged on some standard products based on the activities involved is charged accordingly, and not based on standard overhead allocation rate.
Basically the overheads are divided into various activities and then distributed to each product based on the volume of activity in the manufacturing process of such activity.
Answer:
It is cheaper to make the units in-house.
Explanation:
Giving the following information:
Make in-house:
Direct material $ 8
Direct labor 24
Overhead 40
Total costs per unit $72
Buying price= $60
<u>We need to determine which option provides the lower cost. Because 40% of overhead will remain constant, we have to take it out of the equation.</u>
<u>Production cost:</u>
Direct material $ 8
Direct labor 24
Overhead= 40*0.6= 24
Total production cost= $56
It is cheaper to make the units in-house.
